§ 5-1-13-2 — Use of surplus proceeds

Indiana § 5-1-13-2

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1: BONDS AND OTHER OBLIGATIONS
• Ch. 13: Disposition of Surplus Bond Proceeds

Text

(a) Notwithstanding any other law, whenever:
(1) bonds are issued by any local issuing body in the state of
Indiana for any lawful purpose or project;
(2) the purpose or project for which the bonds were issued has
been accomplished or abandoned; and
(3) a surplus remains from the proceeds of the bonds or
investment earnings derived from the proceeds of those bonds;
the local issuing body may use the surplus only in the manner
prescribed by subsection (b), (c), or (d).
(b) The legislative body or other governing body of any such local
issuing body may by an order, ordinance, or resolution entered of
record direct the disbursing officer of such local issuing body to
transfer the surplus bond proceeds or investment earnings to the fund
of the local issuing body pledged to the payment of principal and
interest on those bonds, and upon such order, ordinance, or resolution
being made, the disbursing officer shall make such transfer. Thereafter
such funds transferred shall be used for the payment of the bonds to
which the surplus bond proceeds or investment earnings are
attributable or interest due for such bonds.
(c) Surplus bond proceeds or investment earnings may be used by
a local issuing body for the following purposes:
(1) To maintain a debt service reserve fund for the bonds to which
the surplus bond proceeds or investment earnings are attributable,
at the level required under the terms of the bonds, if the local
issuing body adopts an ordinance, resolution, or order authorizing
that use of the proceeds or earnings.
(2) To pay the principal or interest, or both, on any other bonds of
the local issuing body, if the local issuing body adopts an
ordinance, a resolution, or an order authorizing the use of the
surplus proceeds to pay principal or interest on the bonds.
(3) To reduce the rate or amount of ad valorem property taxes,
special benefit taxes on property, or tax increment revenues
imposed by or allocated to the local issuing body.
(d) This section applies to bonds that are not payable from ad
valorem property taxes, special benefit taxes on property, or tax
increment revenues derived from property taxes. Surplus bond
proceeds or investment earnings may be used by a local issuing body
for the same purpose or type of project for which the bonds were
originally issued, if:
(1) the fiscal officer of the local issuing body certifies before or
at the time of that use that the surplus was not anticipated at the
time of issuance of the bonds; and
(2) the board or legislative body responsible for issuing the bonds
takes action approving the use of surplus bond proceeds or
investment earnings for the same purpose or type of project for
which the bonds were originally issued.
[Pre-Local Government Recodification Citation:
19-8-6-1.]
As added by Acts 1980, P.L.8, SEC.23. Amended by
P.L.24-1984, SEC.2; P.L.37-1988, SEC.1; P.L.2-1989, SEC.3;
P.L.146-2008, SEC.27.